Tell us a bit about what you do at Renault.
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I have two roles at Renault. We are at the heart of a unique transformation. Digital is massively entering the automotive industry—both upstream, in vehicle design and manufacturing, and downstream, with customer relationships. So there is an enormous digital transformation to be made at Renault. The first step was to communicate the value that digital could bring to the entire company. We did a lot of work to identify—and quantify—all digital projects that could generate value for the Renault Group. So we had a clear objective: It was really the first step toward onboarding the whole company.
We focused on value rather than the transformation itself. We have three main levers. The first is technology oriented. We had to build a digital platform that would work alongside our legacy systems and allow us to get value from all of our data. Our data is spread across more than 2, applications, so we needed a digital platform that would consolidate the data and make it usable.
Second, we changed our ways of working. We decided to use agile for all of our new projects. This is quite new for our staff, so scrum masters and agile coaches were needed to explain how to work in an agile way. We also upgraded our working tools within the company to facilitate real-time collaboration and information sharing for our teams, since so many of our employees are traveling and working all over the world. Finally, we had to hire new IT talent, as well as upskill our existing teams to work with the new technologies.
To accelerate the transformation, we created a digital hub called Renault Digital.
Its purpose is to provide the Renault Group with the skills, methodology, and working environment that can facilitate digital transformation. How did you integrate the digital hub within the company as a whole? Indeed, we were aware of two potential pitfalls in creating a digital hub. The first risk was that the hub could become a completely isolated silo and largely irrelevant. This is not hard to imagine, since a group of employees is obviously a small number within a company of , employees.
Agri-food companies have massive purchasing power, while smallholder farmers are looking for ways to improve productivity and quality as well as increase their production and income. When farmers are integrated into global value chains, both sides benefit: However, integration remains a challenge. Sellers and buyers lack data on small family farmers and their cooperatives or other groups with whom they would like to work. There is too little data on crop types, production areas and harvest prospects.
Frederic Vanoosthuyze
This complicates planning while often leaving smallholder farmers without the necessary advice and support to improve their production and income potential. It also complicates the implementation by small farmers of the quality and food safety standards necessary for food businesses. Banks have strict risk management requirements that complicate the provision of financing to small family farmers: The same phenomenon can be observed in the insurance sector.
Most of these challenges can be solved by connecting the different actors in the agricultural value chain through digital marketplaces that manage the supply from smallholder farmers, manage the stocks and manage the commercialization of agricultural products and their transport. The viability of these marketplaces can be guaranteed if they are operated by private companies and financed by fees levied on the commercial transactions they allow.
Quand on passe les bornes, il n’y a plus de limites. (Alfred Jarry)
Indeed, other models based on philanthropy or national or international public funding have shown their limits. This private model does not exclude state control and regulation to avoid the creation of monopolies. The aggregation of farmers into formal groups and cooperatives is also necessary.
This will make it easier to work with them for sellers and buyers, but also to train and support them, for example in traceability and certification processes that are generally mandatory for food manufacturers. Through these digital marketplaces, banks and insurance companies will have access to the data necessary to reduce their risks and thus be able to serve the untapped market of smallholder farmers.
Based on the data, input suppliers will also be able to sell directly to farmers or cooperatives. For example, fertilizer companies could significantly increase their incomes by working directly with cooperatives and smallholder farmers. On average, smallholder farmers use only 15 kg of fertilizer per hectare in Africa: To me, the key is to enable people to collaborate, digitally or not indeed, first and then co-elaborate the vision and then initiate and build, on a try and fail basis, new business models as strong as possible for the company, by taking advantage of the technology.
I think the main issue is to invent the new roles for the management, mainly from commanding to inspiring, from controlling to measuring and supporting. Another challenge is to educate people so that they can understand company figures, as you make them available.
[] Strong distortion in transformation groups
I try to act first and talk second. Anyway I can tell you it has to deal with education and awareness.
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Digital Transformation needs a systematic approach!